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{{propApi.successMessage}} {{region}} Change locationUptick in approvals a positive step toward meeting Tasmania’s housing needs
Uptick in approvals a positive step toward meeting Tasmania’s housing needs
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In July, detached house approvals rose by 48.4 per cent compared to the previous month, indicating a potential turning point for the residential construction sector.
“This is a positive sign for an industry that has faced a challenging environment over the past year,” said Benjamin Price, HIA Executive Director – Tasmania. “However, it’s important to recognise that this growth comes off a low base, and overall approval volumes remain below long-term averages.”
Tasmania has historically averaged around 2,940 new housing approvals per year since the 1980s. In the twelve months to July 2025, approvals totalled just 2,360 – nearly 600 homes below the average.
“This gap highlights the ongoing need to boost housing supply to meet demand across the state,” Mr Price said. “The impacts of undersupply are being felt in rising rents, limited availability, and affordability pressures for both buyers and renters.”
With the 2025 state election now concluded, HIA is calling for a renewed focus on housing delivery.
“The election confirmed that housing is front of mind for Tasmanians,” Mr Price said. “Now is the time for government and industry to work together to get homes planned, approved and built.”
Sustained growth in approvals will require ongoing support through policy and planning reform.
“Unlocking land, streamlining planning systems, and ensuring builders have access to skilled labour and materials are all critical,” Mr Price said. “We also need to ensure regional areas are part of the solution.”
HIA also welcomed the Tasmanian Government’s commitment during the recent election to increase the First Home Owners Grant to $30,000 for those who build their first home.
“This is a practical measure that supports supply by encouraging new construction and helping first home buyers enter the market,” Mr Price said. “It’s one of several policy settings that, when implemented, can help lift approvals closer to long-term average levels.”
“As we move forward, the focus must remain on enabling supply and supporting delivery,” Mr Price said. “The residential building industry is ready to play its part.”
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